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Why Do Agents Buy Insurance Sales Leads?

By: Jason Cunningham (10-30-05)

 It is a pretty new phenomenon; however with the increase reach of the internet, agents and financial planners are buying insurance leads as a way to supplement prospecting activities. Since more and more people are using the internet to look for insurance advice, the marketplace of requests for internet insurance quotes are increasing.

 A lot of traditional insurance agents do not believe individuals go to the internet and request an insurance quote. It should not be surprising; internet revenue has increased over the last five years. I've noticed through years of experience that the typical person who requests an online insurance quote is generally busy, has a need for a particular product or service, and more importantly wants to be contacted right now.

 The risk of buying an insurance lead is the same as purchasing a list or sending a mailer. If the prospect does not want to meet or does not buy,  you have only a disinterest prospect to show for your efforts. Unlike mailers and lists, if a prospect is unqualified because of age or medical condition,  you are more likely to receive a refund, unless you are paying a flat monthly advertising fee as an opposed to a pay per lead program.

 Some insurance agents who have buying online leads for  years have been able to turn prospects into clients. While your income based on these leads is determined by your individual style, remember there is a correlation between the number of qualified people you see on a weekly basis and the amount of money you can put back into your business.  Investigate every online insurance lead program, because every single one is different.

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